WFD

1
WFD Economics

• Tom Harvie-Clark Eric McRory
• 29 October 2003

2
Overview

• Tom
• Why bother?
• Whats required?

• Eric
• How we do it?
• What we do?

3
Why Bother?

• Required
• Article 5 ( Annex III), Article 9 of WFD
• Section 5 (2) (c) of WEWS Act
• Crucial to our understanding
• Opportunity
• Take action in most effective way
• Avoid inappropriate action

4
What Economics is Required?

• Economic analysis of water use (end 2004)
• Economic importance of water use
• Dynamics of Water Use (Baseline Scenario)
• Recovery of costs of water services
• Allow judgements about most cost-effective
  combination of measures

5
What Economics is Required?

• Water Pricing policies to provide adequate
  incentive to use water resources efficiently,
  taking account of polluter pays principles
• adequate contribution disaggregated to at least
  industry, household and agriculture groups
• recovery includes environmental and resource
  (opportunity) costs
• can have regards to social, environmental and
  economic effects and can continue established
  practices
• Report in RBPM

6
What Economics is Required?

• Role in justifying Derogations
• Heavily modified water bodies
• Time or objective derogation
• Disproportionate cost, not just costgtbenefit